BLAW 200
The average cost of developing a successful new drug is approximately:
$1.0-$12 billion
The average cost of developing a successful new drug is approximately:
$2.5-$12 billion
One discussion that is both legal and political is that of "positive rights." How do positive rights differ from negative rights?
A "positive" right requires that the government take action, while a "negative" right limits the power of government.
Which of the following is false?
A corporation is not a legal person.
Which of the following is true regarding types of corporations:
A domestic corporation is one chartered in a home state; a foreign corporation is chartered out-of-state; an alien corporation is chartered outside the United States
Each jurisdiction follows its own rule as to how to handle the negligence of the person who was injured (the plaintiff). Suppose Carl Careless is involved in an accident that causes $100,000 in damage. The jury decides that Carl is 60% at fault, and Defendant Darla is 40% at fault. In what jurisdiction would Carl receive $40,000?
A jurisdiction that follows the "pure" comparative negligence rule;
Each jurisdiction follows its own rule as to how to handle the negligence of the person who was injured (the plaintiff). Suppose Carl Careless is involved in an accident that causes $100,000 in damage. The jury decides that Carl is 60% at fault, and Defendant Darla is 40% at fault. In what jurisdiction would Carl receive $40,000?
A jurisdiction that follows the "pure" comparative negligence rule;
An indemnification is:
A promise by one person to pay for the loss of another
Which of the following is least likely to be a case of disparate impact discrimination?
A requirement that all employees complete an HR-approved training program.
$2.5-$12 billion
A willing, active internal compliance effort to reduce the likelihood and severity of formal agency rule-making and enforcement
Self-regulation is:
A willing, active internal compliance effort to reduce the likelihood and severity of formal agency rule-making and enforcement
Which of the following is NOT an advantage of a corporation.
All of the above are advantages
A corporation is a "person" because:
All of the above are correct
Aggressive Andy, angry that Sneaky Sam had stolen his idea and was about to present it to the boss, decides to take action. Andy grabs the report from Sam, not touching Sam but causing a definite jerking of arms. Sam, upset, takes a ruler and tries to hit Andy, but misses. Andy then tells Sam that unless he agrees not to steal his idea, Andy will not let him out of the cubicle area. Afterward, Sam is seen joking with friends about having stolen your idea. Which torts might have occurred?
Assault, battery, false imprisonment, and possibly conversion.
Which of the following is required under a "long arm" statute? A.Stare decisis B. Purposeful availment C. Foreseeability by defendant of being sued there D. Exclusive jurisdiction E. Fair play and substantial justice
B, C, and E
Which of the following is required under a "long arm" statute? A. Stare decisis B. Purposeful availment C. Foreseeability by defendant of being sued there D. Exclusive jurisdiction E. Fair play and substantial justice
B, C, and E
Which offices are responsible for enforcing antitrust law:
Both "c" and "d" (c) State attorneys general (d) The Federal Trade Commissions and the
Evil Ed has planned to steal the priceless manuscript from Innocent Irene for many years. Ed's plans are intricate, well-thought-out, and deeply felt. This is, in fact, a consuming passion. Ed is, however, quite timid. As a result, he has not yet carried out any of his plans, but dreams of his dastardly success in stealing the manuscript. Has Ed committed any crime? Yes, because the criminal law exists to prevent crime, and in preventing crime society must guard against mens rea. Yes, because this is a "thought crime." Yes, this might be an inchoate (attempted) crime if the prosecutor shows that Evil Ed carried out any part of his plan No, because while he has sufficient mens rea, there is no actus reus. Either [c] or [d]
Both III and V are correct
Evil Ed has planned to steal the priceless manuscript from Innocent Irene for many years. Ed's plans are intricate, well-thought-out, and deeply felt. This is, in fact, a consuming passion. Ed is, however, quite timid. As a result, he has not yet carried out any of his plans, but dreams of his dastardly success in stealing the manuscript. Has Ed committed any crime?
Both III and V are correct
Which is true in U.S. bankruptcy law:
Chapter 7 covers liquidation, and Chapters 11-13 cover reorganization of debts
Which of the following is most likely not a protected class? A. A person whose parents are descended from slaves taken from the African coast B. A person who immigrated from a foreign country C. A woman D. An extremely tall person E. A Zoroastrian
D
A client asks you to continue to work for them, but paid directly and not reported to your employer. This would thus be extra income to you, and you could provide the same excellent service to the client at a lower cost. You should:
Decline the offer and continue to work for your employer
A client asks you to continue to work for them, but paid directly and not reported to your employer. This would thus be extra income to you, and you could provide the same excellent service to the client at a lower cost.
Decline the offer and continue to work for your employer.
Which of the following rights under copyright law refers to the right to sell, rent, lease, lend, or give away copies of the work:
Distribution rights
The elements required to show negligence are:
Duty, breach, cause (actual and proximate), and harm.
Sally is head of a department with an all-female staff. The first male is promoted into the department, and Sally realizes that the communications among the veteran staff are causing the new employee to be deeply uncomfortable, although he has not complained. Sally should:
Engage each staff member as to expected professional communication, including styles and tones.
A federal question is:
Exclusive jurisdiction in the federal courts
An employee experiences serious vision and hearing impairments. The firm purchased expensive equipment and software to allow the employee to continue to work productively. This was successful for a while. Unfortunately, the medical conditions continue to worsen, and the employee faces increasing challenges in performing the tasks of the job. Physicians are uncertain whether the employee will be able to continue to function in the job. The employer should:
Explore all possible means to accommodate the employee's impairments allowing them to accomplish the job
An employee experiences serious vision and hearing impairments. The firm purchased expensive equipment and software to allow the employee to continue to work productively. This was successful for a while. Unfortunately, the medical conditions continue to worsen, and the employee faces increasing challenges in performing the tasks of the job. Physicians are uncertain whether the employee will be able to continue to function in the job. The employer should:
Explore all possible means to accommodate the employee's impairments allowing them to accomplish the job Explore, with the employee, potential solutions including a redefinition of the job or of different jobs the employee might be able to do it
A foreign corporation is a corporation from outside the United States.
FALSE
A litigant may file a case in federal court under the theory of diversity of citizenship if he or she is of a different racial or ethnic background than the defendant. Hint: Research "concurrent jurisdiction" involving state and federal courts.
FALSE
A non-profit corporation need not worry about the monies that would be profits if the non-profit were a for-profit corporation.
FALSE
An appeals court will give deference to a trial court for findings of law.
FALSE
Courts of law and courts of equity are distinct in the United States.
FALSE
If two parties have not dealt with each other before, the court will not interfere in interpreting a contract in a way the parties might not have agreed.
FALSE
Under Agency Law, "compensation" must be in legal currency.
FALSE
Under the Uniform Commercial Code, special warranties apply to all parties.
FALSE
"D&O insurance" is a Direct Offering from the insurer to a second insurer.
False
"Independent" labs such as UL, which are funded by industry, are suspect because of their funding.
False
A joint venture is synonymous with a general partnership.
False
A nonprofit corporation need not worry about the monies that would be profits if the nonprofit were a for-profit corporation.
False
Actus reus is the "guilty mind" that shows a criminal intent.
False
Administrative law, the realm of regulation, is a fairly minor concern for business.
False
An appeals court will give deference to a trial court for findings of law.
False
Appellate courts will defer to trial court judges as to an issue of law.
False
Employment-at-will is a doctrine of legal inequality: after all, most employees are not wealthy while many employers and bosses are.
False
If a breach of contract occurs, the court is likely to return the parties to their ex ante position, or the position they held before the contract.
False
If two parties have not dealt with each other before, the court will not interfere in interpreting a contract in a way the parties might not have agreed.
False
In Agency Law, respondeat superior is a duty owed by the master, while vicarious liability is the duty owed by the servant
False
In a civil law system, the laws are in flux, dependent upon court cases.
False
In a criminal trial, the victim is a party to the action against the defendant accused of the crime.
False
In bankruptcy law, "Chapter 11" involves a liquidation of debts.
False
In bankruptcy law, "Chapter 7" involves a reorganization of debts.
False
It is not possible to buy air above land.
False
It is not possible, under Agency Law, to avoid liability for a violation of the important duty of loyalty.
False
Mens rea is the act that leads to criminal liability.
False
Peaceful Pauline spends her life savings (and then some!) on building an artists' retreat, with a mission to expand art education to the people of the world, to make them more gentle and caring through art. Pauline, annoyed at continued burglary of her literally hand-built retreat, sets up a 12-gauge shotgun to protect her property (and her precious artwork!) during the off-season. The shotgun is set to fire when a trip-wire is triggered at the entrance. Evil Elizabeth, seeking artwork for her downtown loft, breaks into Pauline's building, and is immediately rendered devoid of life by the shotgun, aimed expertly at burglars' abdomens. Neither Pauline nor anyone else was in the building (as it was off-season). Pauline is charged with Elizabeth's murder, with a lesser charge of negligent homicide. If Pauline claims the defense of defense of dwelling, she will not be liable for a crime.
False
Punitive damages are common in tort law cases.
False
Rent control is an effective way to reduce housing costs for nearly all residents in a high-cost area.
False
Sustainability often refers to environmental concerns, yet has little applicability in free-market economics or corporate governance.
False
The "not in my backyard" term relates to regulations concerning environmental protections in residential backyards.
False
The Supreme Court, head of the most important branch, is addressed in Article I of the U.S. Constitution.
False
The government of the U.S. is a direct democracy
False
The supreme court, head of the most important branch, is addressed in article 1 of the U.S. constitution
False
Under Agency Law, only the servant owed duties.
False
Under the duty of obedience in Agency Law, the master must follow the instructions of a servant who has superior knowledge of a specific issue, such as the type of iron used in making swords.
False
Which of the following would be an approximate rank order of societies form most likely to follow the rule of law to least likely to follow the rule of law. In other words, rank the following societies from "most lawful" to "least lawful"
Finland, United States, Italy, Venezuela, North Korea
Which of the following would be an approximate rank order of societies from most likely to follow the rule of law to least likely to follow the rule of law. In other words, rank the following societies from "most lawful" to "least lawful":
Finland, United States, Italy, Venezuela, North Korea
The Law of modern Japan
German
The law of modern Japan is:
German
Which of the following is least likely to be a bona fide occupational qualification?
Hiring only female wait staff.
Intellectual property is important for all of the following reasons except:
It replaces the prior art.
Jacqueline and Jake operate a website in Rhode Island. They receive a document summoning them to appear in a court in Oregon. They:
Must appear if their website offers order-taking functionality
You are a sales representative for a major corporation. In meetings with an official during an international sales trip for a large industrial purchase, the official cheerfully mentions that he will be applying for his child to attend an expensive private school. You get the distinct impression that this was an implied request for your company to "assist" in this.
Nod sympathetically but attempt to be as non-committal as possible, then seek guidance from senior managers
You are a sales representative for a major corporation. In meetings with an official during an international sales trip for a large industrial purchase, the official cheerfully mentions that he will be applying for his child to attend an expensive private school. You get the distinct impression that this was an implied request for your company to "assist" in this. You should:
Nod sympathetically but non-committally, then seek guidance from senior managers.
If you purchase a product "as is," and immediately upon taking possession it falls apart, you can:
Not sue, because "as is" is an express disclaimer
Loud Larry owns a bar, which he converts to a live-music venue. As business is good, he expands his hours to 4:00 a.m., causing residential neighbors to complain about the deep "thump, thump, thump..." of the massive bass speakers in the club. Under which legal doctrine could Larry's neighbors force him to stop playing loud music?
Nuisance
You are CEO of a massive global enterprise, with successful divisions in many markets. The best economic and legal position for your company is:
Oligopoly
If Capitalist Karl decides to offer additional shares in his corporation, but does not want to lose control of the company, he might: Options: Convert the corporation to a partnership. Offer "watered" stock to prospective investors. Borrow the capital instead. Create a non-voting class of shares. Lead a revolution of the bourgeoisie.
Options 3 or 4
In business law, double taxation refers to:
Payment of taxes by the corporation and again by the shareholder
Administrative law is carried out through agencies, which are bureaucratic in structure. Which of the following is NOT part of the "rational model" of bureaucracy proposed by Max Weber?
Political decision-making.
Which of the following is not true of preferred shares:
Preferred shareholders are paid dividends before bondholders.
A cooperative pools resources among members to provide lower-cost products or services.
Recent cooperatives include health care cooperatives, which pool resources from members to benefit from purchasing leverage in seeking lower-cost alternatives that members could not individually obtain.
Fred is the supervisor for a crew of construction employees. Several employees converse with each other in their native language. Sam approaches Fred to voice concerns by the other employees about the foreign language being spoken. Fred should:
Require all employees to speak English when on the job, especially if safety issues are present.
In which of the following cases is the employer least likely to be liable for discrimination:
Requiring pilots to accomplish training at twice the rate required under FAA rules.
Modern civil law systems are based historically in the following:
Rome's ius civile
Modern civil law systems are based on the following
Rome's ius civile
A "uniform code" is not law until adopted by a state.
TRUE
Bankruptcy and intellectual property are two types of cases that must be heard in federal court.
TRUE
Contract law uses an objective test to determine whether an offer was an "offer."
TRUE
Imputed knowledge occurs when the law assigns, or "imputes" knowledge to a master whether or not the master actually "knew" a fact. Hint: Review the three levels of knowledge in law.
TRUE
Natural law refers to a moral realm that is separate from and above a society's specific laws.
TRUE
One of the most important duties in Agency Law is the duty of loyalty, which is owed by the servant to the master.
TRUE
Property and contract law were considered an essential starting point for the rule of law, and a necessary precondition for economic development.
TRUE
The "administrative state" is a term referring to the vast bureaus under the executive authority with legislative oversight.
TRUE
The courts are generally "hands off" in litigation, and will adopt rules that promote self-regulation. Hint: What is "discovery" in litigation
TRUE
U.S. courts have some flexibility in evaluating cases and enforcing a resolution.
TRUE
Under Article 2 of the Uniform Commercial Code, a contract might be upheld even if the parties forgot to specify the price.
TRUE
Under the Uniform Commercial Code, a "buyer in the ordinary course of business" supersedes the interests of the original seller who is still owed money on the item. In other words, such a buyer purchases the item "free and clear," even if the merchant doesn't own it.
TRUE
Under the doctrine of congressional delegation of power, when Congress creates a new agency it often delegates the rule-making process to the agency being created
TRUE
Which of the following refers in U.S. law to the legal equivalent of the Golden Rule: "Do unto others as you would have them do unto you":
The "Clean Hands" doctrine
Which of the following refers in U.S. law to the legal equivalent of the Golden Rule: "Do unto others as you would have them do unto you": Hint: Review equitable doctrines.
The "Clean Hands" doctrine
Which are not restrictions in an "S" corporation?
The "S" corporation must include a for-profit entity shareholder.
Fred Q. Taxpayer sues the federal government on the basis of a misuse of money in the acquisition of pencils for the U.S. Department of Commerce. A U.S. court is likely to rule that:
The case cannot proceed due to a lack of standing
You are walking normally through the mall. Unbeknownst to you or to the mall owner, an elevator motor has begun leaking oil, dripping onto the ceiling of the elevator and then into its floor. When riding the elevator, you step in the oil, and upon exiting the elevator, you slip on the sleek floor, breaking your hip. Under the common law, which of the following is true?
The court will look to the opinions of other judges
If an owner has limited liability, this means that:
The liability for losses is limited to the extent of the investment
Civil procedure refers to
The process of litigation
Which of the following is not an example of "trade dress"?
The technology behind your product: Glarf.
Your business sells a great product, Glarfs. Your product, Glarfs, goes viral, and soon nearly everyone is talking about Glarfs. In fact, they talk about it so much, it becomes a verb, meaning "to Glarf." Pretty soon, copycat producers produce their versions of your products, but everyone still calls them all Glarfs, even though only yours are the real Glarfs. No matter, Glarfs becomes a common term used to describe the type of product. Which of the following is not true:
There is no downside, as you're now super-successful.
Your business sells a great product, Glarfs. Your product, Glarfs, goes viral, and soon nearly everyone is talking about Glarfs. In fact, they talk about it so much, it becomes a verb, meaning "to Glarf." Pretty soon, copycat producers produce their versions of your products, but everyone still calls them all Glarfs, even though only yours are the real Glarfs. No matter, Glarfs becomes a common term used to describe the type of product. Which of the following is not true:
There is no downside, as you're now super-successful.
You are an entrepreneur, fresh from an IPO placing your net worth somewhere in the top one-one-hundredth of one percent. (You're now an evil top one-one-hundredth of one percenter!) You've always had a dream of flying, and so, between efforts at your newest start-up, you take lessons at your local airport to learn how to fly helicopters. Upon receiving your license (and after the appropriate festivities), you stop by the helicopter dealer next door, and purchase a sparkly, brand-new, 5-bladed, hot-rod Hughes MD500 helicopter (with the special two-tone paint job, of course). After signing the papers and being given the keys, you hop in the helicopter, lift off, and begin to climb away—whereupon the tail rotor, which had been installed without safety fasteners, twists off. The helicopter, minus its tail rotor, spins out of control. Your surviving relatives can sue the dealer because:
This is an implied warranty from a usage of trade.
"This is one of the finest vintages in the last 20 years!" Which of the following is most true:
This statement creates an express warranty if it is stated by a wine connoisseur.
"This is one of the finest vintages in the last 20 years!" Which of the following is most true:
This statement creates an express warranty if it is stated by a wine connoisseur.
"Blue sky" laws were established to protect small investors.
True
"Ethics" now covers sourcing of products even several steps removed from the company's own production.
True
A "uniform code" is not law until adopted by a state.
True
A franchise is a means to leverage one's energies and modest capital with the intellectual property of the franchisor.
True
A limited partnership must have at least one general partner who has unlimited liability for the debts of the partnership.
True
Administrative adjudication refers to the realm of legal proceedings within a regulatory agenc
True
Agency Law is important because the rules that apply to Master/Servant also apply to Employer/Employee and Principal/Agent.
True
Although the "master" and "servant" were almost always of unequal wealth and status, the law treats them as legal equals under Agency Law.
True
An LLC is among the most popular forms of business, providing numerous benefits and few disadvantages.
True
Constructive knowledge occurs when a person should have known a fact.
True
In a general partnership, each partner may be sued for and lose all personal assets, even if the harm was caused by another partner.
True
In a strict liability crime, mens rea, or a guilty mind, is not required. Businesses may be liable for criminal punishment in "regulatory crimes" such as health and safety regulations, environmental pollution, or taxation.
True
In an agency, appeals are made within the agency, heard by Administrative Law Judges who are not under the authority of the judicial power of the U.S. Supreme Court.
True
In bankruptcy law, a "fresh start" is a discharge of debts.
True
In contract law, the legal tests of "offer," "acceptance," and "consideration" are fairly easy to satisfy.
True
It is challenging to create and maintain a good culture, while a bad culture can quickly overwhelm a good one.
True
Japanese law is a to a large extent German law
True
Laches is the equitable principle that if one waits too long before complaining about an issue, a court may deny them a recovery even if they would have won earlier.
True
Managing conflict is ultimately productive, because in the resolution of disputes we can move on.
True
Much of the realm of regulation is a "dance of experts" in which technical experts on both sides of the regulatory divide decide, argue about, and enforce regulatory rules.
True
One of the most important duties in Agency Law is the duty of loyalty, which is owed by the servant to the master.
True
One way to measure how closely a society follows the law is to look at the inverse of the level of corruption in that society
True
One way to measure how closely a society follows the rule of law is to look at the inverse of the level of corruption in that society.
True
Prior to the advent of securities law, the assumption was that when a market fell, weaker firms would fail. This would "cleanse" the market, resulting in better and stronger future growth. The basis of this was the concept of "moral hazard," or the affect of risk on behavior.
True
Real property is land and anything affixed thereto.
True
Rules of evidence concern the admissibility of evidence in a trial.
True
The Model Penal Code has, through legislation in individual states, modified common law crimes into a more standardized, simplified statutory approach.
True
The Restatement of Torts (2d) has, through legislation in individual states, modified common law torts into a more standardized, simplified statutory approach.
True
The basis of a "con" is confidence.
True
The courts are generally "hands off" in litigation, and will adopt rules that promote self-regulation.
True
The essence of Agency Law is the Master-Servant relationship.
True
The practical impact on business is in regulatory law rather than constitutional law.
True
There are many exceptions to the legal doctrine of employment-at-will.
True
Umbrella insurance is coverage that extends above other policies, to protect high-net-worth individuals from extraordinary losses.
True
Under Agency Law, the master must reimburse the servant for expenses taken on behalf of the master in furtherance of the service.
True
Under the doctrine of congressional delegation of power, when Congress creates a new agency it often delegates the rule-making process to the agency being created.
True
Under the doctrine of employment-at-will, an employee can be fired for absolutely any reason at all: Even if the boss "just felt like it!"
True
Under the jurisprudence of legal positivism, a society's written law is law even if it is immoral or unfair.
True
An "S" Corporation is a corporation with favored tax treatment yet legal restrictions on ownership.
True: An "S" corporation is a regular "C" corporation that elects with with internal revenue service to be treated as an S corporation for tax purposes
Sally has been accused of a crime, which has been widely publicized in her local area. If Sally believes that she cannot receive a fair trial based on this negative publicity, she might seek to change the location of the trial. This is referred to as:
Venue
Under what circumstance would a judge not pierce the corporate veil?
Victim Victor amply funds a corporation, but it fails anyway due to a market downturn.
Suppose a person believes they have been discriminated against, and presents their case to the Equal Employment Opportunity Commission. The EEOC decides not to pursue the case. The employee:
Will receive a Notice of Right to Sue, and may pursue the case individually.
In U.S. law, bankruptcy courts are:
Within each U.S. District Court
Under Rule 802 of the Federal Rules of Evidence, "hearsay" (a statement of another person's words, thus difficult to substantiate) is not admissible as evidence in court. Among many exceptions, Rule 803(16) concerns "statements in ancient documents": "A statement in a document that is at least 20 years old and whose authenticity is established." If Rule 803(16) applies, can the jury hear the testimony?
Yes, because Rule 803(16) is an exception to Rule 802.
Under Rule 802 of the Federal Rules of Evidence, "hearsay" (a statement of another person's words, thus difficult to substantiate) is not admissible as evidence in court. Among many exceptions, Rule 803(16) concerns "statements in ancient documents": "A statement in a document that is at least 20 years old and whose authenticity is established." If Rule 803(16) applies, can the jury hear the testimony?
Yes, because Rule 803(16) is an exception to Rule 802.
You operate a highly successful software firm from your beachfront mansion in Hawaii. You receive official notice that you are being sued by a disgruntled customer from Maine. It is February. Must you defend your suit in Maine?
Yes, if your website offers full e-commerce such as ordering and business support
In contract law, what phrase refers to the power you have to enter into whatever deal you believe is best for you:
You are the "master of your offer
In contract law, what phrase refers to the power you have to enter into whatever deal you believe is best for you:
You are the "master of your offer"
Workers' compensation is: Hint: Research "workers' compensation" statutes.
a "no-fault" statute, where the employee receives compensation upon injury
If Capitalist Karl decides to offer additional shares in his corporation, but doesn't want to lose control of the company, he might:
a) Convert the corporation to a partnership. b) Offer "watered" stock to prospective investors. c) Borrow the capital instead. d) Create a nonvoting class of shares. e) Either (c) or (d).
In regulation, the interests of the parties, including the government are
differing but with substantial overlap
Under the Uniform Commercial Code, special warranties apply to all parties.
false
